RARE Infrastructure, a leading listed infrastructure manager, is reducing the fees to its suite of global listed infrastructure funds.
“We are bringing scale and efficiency benefits to investors by removing performance fees from the RARE Infrastructure Value Funds, both the ‘Hedged’ and the ‘Unhedged’ variants, effective July 1, 2020,” said Steve Williams, Head of Australian Intermediary Sales at RARE.
The other change to investor expenses involves a reduction in the buy/sell spreads on RARE’s three listed infrastructure funds.
The new spreads for the RARE Infrastructure Income and Value – Hedged and Unhedged Funds are: buy 0.12% / sell 0.05%. A reduction of 0.08% and 0.10% respectively. While the RARE Emerging Markets Fund has reduced to 0.14% / 0.17%.
“Additionally, we have introduced new sector designations for both Renewables and Energy Infrastructure,” said Williams.
“These changes are designed to enhance the granularity of reporting and to reflect developments and expected growth within the infrastructure asset class. Importantly, these changes do not impact the way RARE constructs its investable universe or its investment processes,” said Williams.
“For Australian investors, it is worth noting that global listed infrastructure stocks can provide an attractive source of income in the current environment and have a low correlation to domestic equities and global bonds. This makes them an ideal vehicle to provide portfolio diversification. Regulation and long-term contracts generally offer stable cash flow and greater capital stability.
“We continue to believe that this is a time when select listed infrastructure can significantly fortify an individual or SMSF portfolio on the basis that certain infrastructure assets can be shown to offer significant downside protection” added Williams.